Swiss National Bank scraps exchange rate ceiling

The Swiss National Bank (SNB) lifted on the 15 January 2015 the minimum exchange rate of CHF1.20 per euro, introduced in September 2011. The decision caught markets by surprise and caused the Swiss stock market to plunge, and the value of the Swiss franc to rise against the euro.

In a statement the federal government said they trusted the national bank, but also commented it was 'obvious' that the SNB’s decision 'presented major challenges for the Swiss economy, in particular the export and tourism industries'.

• Primary Source

Swissinfo.ch, 15.01.15: FAQ: Quick guide to what’s happened to the Swiss franc http://www.swissinfo.ch/eng/quick-guide-to-what-s-happened-to-the-swiss-franc/41218100

The Local.ch, 15.01.15: Markets panic as Swiss scrap euro rate cap http://www.thelocal.ch/20150115/markets-panic-as-swiss-scrap-euro-rate-cap

BBC News, 15.01.15: Swiss franc soars as Switzerland abandons euro cap http://www.bbc.co.uk/news/business-30829917

Swissinfo.ch: Tag: Currency value http://www.swissinfo.ch/eng/in-depth/currency-value---cause-and-effects

Website: Swiss National Bank http://www.snb.ch/en/

SNB: Press Release, 15.01.15: Swiss National Bank discontinues minimum exchange rate and lowers interest rate to –0.75% http://www.snb.ch/en/mmr/reference/pre_20150115/source/pre_20150115.en.pdf

EurActiv, 15.01.15: Swiss franc unpegged from euro, value soars http://www.euractiv.com/sections/euro-finance/swiss-franc-unpegged-euro-value-soars-311302

EUObserver, 15.01.15: Euro falls after Switzerland abandons currency cap https://euobserver.com/economic/127223

The Conversation, 15.01.15: Soaring Swiss franc causes havoc on currency markets https://theconversation.com/soaring-swiss-franc-causes-havoc-on-currency-markets-36323

Euro|Topics: Main Focus, 16.01.15: Franc no longer pegged to euro http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER156773-Franc-no-longer-pegged-to-euro

Swissinfo.ch, 16.01.15: Newspapers condone Swiss National Bank's decision http://www.swissinfo.ch/eng/newspapers-condone-swiss-national-bank-s-decision/41219786

The Local.ch, 16.01.15: Shock move to untether franc sparks debate http://www.thelocal.ch/20150116/shock-move-to-untether-franc-sparks-debate

EurActiv, 19.01.15: Swiss officials reassure after scrapping euro cap http://www.euractiv.com/sections/euro-finance/swiss-officials-reassure-after-scrapping-euro-cap-311363

Tages-Anzeiger, 19.01.15: Strong franc may reduce immigration (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE156796-Strong-franc-may-reduce-immigration

The Local.ch, 18.01.15: Tourism industry reeling from soaring franc http://www.thelocal.ch/20150118/tourism-industry-reeling-from-soaring-franc

Swissinfo.ch, 19.01.15: Strong Swiss franc brings greater risks for exports http://www.swissinfo.ch/eng/strong-swiss-franc-brings-greater-risks-for-exports/41223744

Blog: Open Europe, 16.01.15: What does the Swiss National Bank know about ECB QE that the market doesn’t? http://openeurope.org.uk/impact/swiss-national-bank-know-ecb-qe-market-doesnt/

EUObserver, 20.01.15: Thousands of Poles hit by Swiss franc decision https://euobserver.com/beyond-brussels/127284

Balkan Insight, 20.01.15: Croatia Freezes Swiss Franc Exchange Rate http://www.balkaninsight.com/en/article/swiss-franc-growth-worries-croatian-government

BBC News, 20.01.15: Swiss franc move leaves European homeowners counting cost http://www.bbc.co.uk/news/blogs-eu-30896485

EP:EPRS: At a Glance, 21.01.15: Swiss decision to discontinue its exchange rate ceiling http://www.europarl.europa.eu/EPRS/EPRS-AaG-545730-Swiss-decision-exchange-rate-ceiling-FINAL.pdf

Balkan Insight, 24.02.15: Montenegro Plans Rescue for Swiss Franc Borrowers http://www.balkaninsight.com/en/article/montenegro-mulls-loan-conversion-on-swiss-franc-surge

La Tribune de Genève, 16.03.15: Swiss will beg to join the euro (via Euro|Topics) http://www.eurotopics.net/en/home/presseschau/archiv/aehnliche/archiv_article/ARTICLE160044-Swiss-will-beg-to-join-the-euro

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